Under the changes, the EU will have the power to check on national budgets and a new fund is to be set up to support the euro should the currency ever find itself in a dangerously weak position.
Fines can also be levied on countries in the eurozone which exceed agreed deficit limits, reports BBC News.
Herman Van Rompuy, the president of the EU Council, said: "We recommend a robust and credible permanent crisis-resolution mechanism to safeguard the financial stability of the eurozone as a whole."
The intention of the new plans is to force nations to sort out their own economic problems before they start to affect the rest of the economic bloc.
Earlier this month, Jean-Claude Trichet, the president of the European Central Bank, refused to lend his full support to the draft sanctions after they were watered down to propose that countries would not be automatically fined for breaking budget deficit rules, reported the Financial Times.
By Claire Archer